Critical Illness Calculator: How Much Will You Need?
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Critical illnesses are unfortunately widespread in Canada. Recent statistics show that around 8% of adults have a diagnosed heart condition and 2 out of 5 Canadians are expected to be diagnosed with cancer over the course of their lifetime. 1 out 4 Canadians is expected to die of cancer.
Critical illness insurance in Canada provides protection if the worst should happen. Around 90% of all critical illness insurance claims are centred around cardiac disease or cancer.
Why should I use a critical illness insurance calculator?
A critical illness calculator allows you to determine if critical illness insurance is worth it for you. It will help you look at different scenarios and visualize the difference made by greater or lower contributions. It can also help you see the pros and cons of different critical illness insurance providers.
Good to know
Disability vs critical illness insurance: critical illness coverage will not replace a loss of earnings due to inability to work. For comprehensive protection of your income in case of illness or injury see our guide to disability insurance.
How does critical illness insurance in Canada work?
Critical illness insurance in Canada gives a lump sum of money to a beneficiary, after a waiting period set out in the contract, if they are diagnosed with one of the illnesses defined in the policy.
The lump-sum is given in a single payment and is typically equivalent to 100% of the amount specified in the insurance policy. Hence why it is important to know the amount you would need before purchasing. The critical illness insurance calculator gives you an idea of how much money you would need in the event of a critical illness diagnosis.
How much does critical illness insurance cost?
The pricing of your critical illness insurance will depend on the amount of coverage you require.
The amount of coverage you require will depend on your budget, your health and family situations and the duration of the coverage that suits you.
Some insurance providers cover more illnesses than others. Most cover around 26 but there are budget options, for example with Canada Life, that cover just the big 4: heart attack, cancer, stroke, and coronary artery bypass surgery. Additionally, some providers offer insurance that specifically deals with cancer, such as iA (Industrial Alliance).
To find the best critical illness insurance for you, shop around online or use our life insurance comparison tool.
How to use the critical insurance calculator?
This tool will help you calculate how much critical insurance coverage is right for you.
First, you will input your monthly income and how many months of coverage you require. To quickly estimate how much critical illness coverage you need, you can multiply your monthly income by the number of months you would like to be covered for.
Next, you should consider additional costs related to illness. We suggest taking into account the costs of transportation to and from the hospital, the installation of accessibility aids around the home etc.
Then you can choose how much of your savings would be available to you in case of critical illness and how much you would be willing or able to draw upon.
Finally, you can take into account any existing disability insurance or life insurance you already have in place.
Compare critical insurance plans today